Click here to close now.

SYS-CON MEDIA Authors: Kevin Jackson, Peter Silva, Greg Wind, Glenn Rossman, Michael Jannery

News Feed Item

Star Gold Completes Scoping Study on Longstreet Property

COEUR D'ALENE, ID -- (Marketwired) -- 06/02/14 -- Star Gold Corp. ("Star Gold" or the "Company") (OTCQB: SRGZ) reported a Scoping Study ("The Study") of the Main Zone which is part of the Longstreet deposit completed by A-Z Mining Professionals of Ontario, Canada. The full version of the Scoping Study will be available on the Star Gold website at www.stargoldcorp.com.

Highlights of the Scoping Study Include:

Net Present Value (NPV): $13.3m at a 10% discount rate, pre-tax.

Internal Rate of Return (IRR): 29%.

Payback Period: 2.7 years.

Capital Cost: $25.4 Million, including a contingency provision and working capital.

Gold and Silver Pricing Assumptions: Gold at $1350/oz and Silver at $24/oz.

Mining Rate: 2,800 tons per day (TPD).

Net Recoveries: 86% gold and 15% silver.

Heap Leach Processing Technology: conventional technology utilizing leach pads.

Mine Life: 4.4 years

Direct Employment: 11 employees.

Royalty: Includes a 3% Net Smelter Royalty (NSR) owed to Minquest.

"The Study of the Main Zone of the Longstreet deposit shows that a small, at-surface pit using heap leach recoveries could be an attractive project at $1350 gold. The Study highlights that a modest $25m CAPEX would be required for the outlined pit and this could be leveraged by further expansion and /or the discovery and development of other satellite deposits on Longstreet. The Longstreet project displays great optionality especially to the gold price" said David Segelov, President & CEO of Star Gold Corp. "The Study also importantly details the risks associated with the project."

Overview of the Longstreet Project and PEA
The tonnage incorporated into the Study includes a pit containing 4.4 million tons, with an average gold grade of 0.02 oz/ton. Gold recoveries are estimated at 86%. Silver would be a by-product and would add approximately 7% to the project value. Operating costs would be $808oz for gold and with the gold and silver combined would be $760oz.

The Base Case of the Study was constructed using $1350 per/oz gold price. The two variables which show the most sensitivity for the IRR of the project are gold price and grade mined.

A summary of the operating assumptions and financial model for the project is as follows:


Item                                           TOTAL
Tonnes Mined                                   4,400,000

Mined Grade (oz/t)                             0.022
Strip Ratio (waste to ore)                     0.70:1
                                                          ($million)
Life of Mine Total Revenue                                $119
Initial Capital Expenditure                               $25.4
Life of Mine Sustaining Capital                           $0
Total Before-Tax Cash Flow (undiscounted)                 $28.5
Before-tax NPV @ 10%                                      $13.3
Before-tax IRR (%)                                        29 %




Capital Cost Estimate
Initial capital cost estimates for the project are as follows:

Item                                                Total Cost
                                                    ($million)
Permitting                                          $2.0
Mine                                                $0.2
Heap Leach Pad & Processing Plant                   $10.
Surface Infrastructure & Mobile Equipment           $4.0
EPCM, Contractor O/H & Owners Costs                 $2.5
Contingency                                         $2.6
Working Capital                                     $3.7
Total Capital Cost                                  $25.4

Initial capital costs include all costs required to bring the facility to production. The ongoing life of mine sustaining capital costs are estimated to be nil over the 4.4 year mine life.



Operating Cost Estimate

                          Average
Item                      Unit Cost
                          ($/ton mined)
Mining                    $9.09
Processing                $3.65
G&A                       $2.13
Total Operating Cost      $14.87




Sensitivity Analysis
A sensitivity analysis was performed. The two most
volatile assumptions to the project are gold prices and
gold grade.

Changes to selling price of GOLD    NPV at 10%,  IRR, %
                                    $million

Increase of 15% ($1552 oz)          $26.0        46%
Base Case ($1350 oz)                $13.3        29%
Decrease of 15% ($1147 oz)          $1           12%


About Star Gold Corp.

Star Gold is a gold exploration/development company with 115 unpatented claims and located within the historically prolific Walker Lane belt. The Company is currently focused on developing its flagship property, Longstreet Project. The Longstreet Project is located in Nye County, Nevada.

Cautionary Note to Investors

The United States Securities and Exchange Commission ("SEC") limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce.

The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and all necessary permits and government approvals must be filed with the appropriate governmental authority. This study is not a final or bankable feasibility study and our project currently does not contain any known proven or probable ore reserves under SEC Industry Guide 7 reporting standards.

We advise U.S. investors that various terms used in this report are not recognized under the SEC's Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Mineral resources in these categories have a great amount of uncertainty as to their economic and legal feasibility. "

The results of this study disclosed in this press release are preliminary in nature and material that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the this study will be realized.

U.S. investors are urged to consider closely the disclosure in our latest reports and registration statements filed with the SEC. You can review and obtain copies of these filings at http://www.sec.gov/edgar.shtml. U.S. Investors are cautioned not to assume that any defined resource will ever be converted into SEC Industry Guide 7 compliant reserves.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding the potential development of the Longstreet project, estimates and projections regarding the economic feasibility of the Longstreet project from the Study, including, NPV, IRR, payback period, capital cost, pricing assumptions, mining rate, average recoveries, oxide production amounts and methodologies, mine life, employment requirements, resource amounts and grades, projected revenues, initial capital costs, life of mine sustaining capital, cash flow projections, capital and operating cost estimates and projections, and sensitivity analysis.

When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if, "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements.

Such factors include, among others, uncertainty of mineralized material and mineral resource estimates, risks to projected and estimated economics not reflecting actual economic results due to the uncertainty of mining processes, potential non-uniform sections of mineralized material, potential mining hazards and accidents, changes in equipment and labor costs, changes in projected gold and silver prices and demand, competition in the industry, risks related to project development determinations, the inherently hazardous nature of mining-related activities, potential effects on the Company's operations of environmental regulations, risks due to legal proceedings, liquidity risks and risks related to uncertainty of being able to raise capital on favorable terms or at all, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K.

Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carr...
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...